BKIC's net profit surges to $6.9m
Manama, July 28, 2011
Bahrain Kuwait Insurance Company (BKIC) achieved a net profit of BD2.6 million ($6.9 million) in the first half of the year, up from BD2.3 million for the same period last year.
And the performance was particularly impressive in the second quarter of the year where net profit was BD1.5 million compared with BD1 million for the same period in 2010.
Investment income increased by 60 per cent, from BD461,000 in the first half of 2010 to BD739,000.
Technical profit decreased by 3 per cent from BD2.27 million to BD2.21 million due to the change in unearned premium reserve method of calculation, which is more accurate and reliable.
The company also registered a higher gross premium revenue of BD1.9 million which amounted to a slight increase of 1 per cent compared with BD18.8 million for the same period in 2010.
This increase is reflected in the gross earnings, which increased by nearly 2 per cent from BD6.5 million to BD6.8 compared with the first half last year.
Technical reserves increased by 9 per cent, from BD12.6m to BD13.7 million.
The return on shareholders' funds was 9.5 per cent compared with 9.3 per cent for the same period last year.
Earnings per share increased from 36 fils to 40 fils.
The company opened its fifth branch on Budaiya Highway to service residents of the Northern Governorate.
"This is in addition to the existing branches in Arad, Manama, Salmabad and Riffa," said chief executive officer Ebrahim Al Rayes. The objective is to ensure the easy accessibility to BKIC's services.”
"The company during this period also launched a new product for the Indian community in Bahrain. This was done in co-operation with ICICI Lumbard, one of the largest insurance companies in India," he added. – TradeArabia News Service